On October 6, 2022, the House of Representatives passed the Limited Liability Shipping Company (LLSC) Law of 2022. The Law established a new type of corporate entity called the Limited Liability Shipping Company (LLSC), which will be established as a limited liability company with the sole purpose of owning and operating Cyprus registered vessels. Also, the Law in question governs issues concerning LLSC’s from their establishment to their liquidation and establishes the institution of the Registrar of LLSC’s as the competent authority for these matters.
Additionally, the Limited Liability Shipping Company (LLSC) Law governs the creation of a centralised mechanism for ship-owning companies and their shareholders to address all issues now handled by the Registrar of Companies. The ultimate goal is to develop an organised and effective framework for ship-owning companies and their shareholders within the Deputy Ministry of Shipping so that it can simplify all issues that presently fall within the authority of the Registrar of Companies.
The Law applies to LLSC’s which were established pursuant to the provisions of the said Law and to a company which was established or registered pursuant to the provisions of the Companies Law and is registered as continuing in the LLSC Registry, under the provisions of Part XV of the Act.
The new legislation, which is tailored for shipping companies, has more straightforward and simplified procedures while at the same time being inspired by the Companies Law (CAP 113) rules.
With the new Law, the competitiveness of the Cyprus flag will be substantially increased.